2017 EU Budget prioritises growth, jobs and migrant crisis

(BRUSSELS) - A draft EU Budget for 2017 of EUR 134.9 bn, proposed Thursday by the EU Commission, focuses on supporting recovery of the economy and addressing Europe's border and immigration challenges.

Increased funding will go to investment in growth, jobs and competitiveness as well as to securing resources to protect the external borders of the EU, to reinforce security inside and outside the Union, provide support for the reception and integration of refugees, and to address the root causes of migration in the countries of origin and transit.

An effective and focused EU Budget in difficult times is a necessity, said Budget Commissioner Kristalina Georgieva: "it helps buffer against shocks, providing a boost to our economy and helping to deal with issues like the refugee crisis.

Ms Georgieva stressed that it was important the budget focused on results, and on "making sure that every euro from the EU budget is well spent."

The Commission is proposing to be flexible within the tight limitations set by the European Parliament and Member States, concentrating on priority areas while reducing spending for less urgent activities.

Euro-MPs and EU Member States now need to jointly discuss the Commission's proposal.

Jobs, growth and investments

The money specifically for supporting economic growth will total €74.6 billion in 2017, compared to €69.8 billion in 2016. This breaks down as follows:

€21.1 billion on growth, employment and competitiveness. This includes €10.6 billion for research and innovation under Horizon 2020, €2.0 billion for education under Erasmus+, €299 million for small and medium sized-enterprises under the COSME programme, and €2.5 billion under the Connecting Europe Facility (CEF).

€2.66 billion for the European Fund for Strategic Investments (EFSI), the vehicle behind the Investment Plan for Europe. This is a success story for Europe, which has secured €106.7 billion in investments in 26 EU Member States in less than a year.

€53.57 billion to support productive investments and structural reforms to foster convergence among Member States and among regions via the European Structural and Investment Funds (ESIF).

Support to European farmers is proposed at €42.9 billion.

Border and refugees

The Draft EU Budget 2017 proposes €5.2 billion to reinforce the external borders of the Union and address the refugee crisisand irregular migration. The Budget includes about €3 billion to fund actions within the EU, such as:

The setting up of the European Border and Coast Guard;

The proposal for a new Entry-Exit System to strengthen border management;

The proposals to review the Common European Asylum System, including a reform of the Dublin mechanism;

The establishment of an EU Agency for Asylum.

It also includes €200 million for the new instrument to provide humanitarian assistance within the EU.

The budget also proposes €2.2 billion for actions outside the EU, in order to address in particular the root causes of the refugee flow, with €750 million under the Facility for Refugees in Turkey, to help reach the €1 billion contribution to this fund from the EU budget; and a pledge for Lebanon and Jordan made at the UN London conference with €525 million from the EU budget, €160 million from the Syria Trust Fund and €200 million of macro-financial assistance.

Security

In view of the growing security challenges the EU and its Member States are facing,, the Draft EU Budget 2017 is also allocating significant resources for security: €111.7 million will go to support Europol and €61.8 million will be dedicated to enhancing the security of the EU institutions, together with an extra €16 million for security measures in 2016.

In line with the increasing importance of stronger European defence cooperation, the Commission is also proposing a preparatory action for research in the defence area with €25 million in 2017.